LEGO Layoffs

darthskellington

Dark Lord of the Typos
Toy maker Lego to lay off 1,200, move Connecticut production to Mexico


As reported by the Associated Press:

COPENHAGEN, Denmark (AP) — Danish toy maker Lego Group said Tuesday that it will end production in Enfield, Conn., and lay off 300 people there in early 2007, while some 900 employees in Denmark will also be sacked over the next three years.
The production in Enfield is to be moved to Mexico, Lego said. Along with the 300 production layoffs, the distribution facility in Enfield will also be affected, Lego said, without providing details.

At Lego's headquarters in Denmark, up to 900 production employees will lose their jobs over the next three years as nearly a third of the production will be moved to the Czech Republic, the company said.

Some Lego products, including Lego Technic and Bionicle, will still be made at Lego's headquarters in Billund, 160 miles west of Copenhagen, which presently has a staff of 3,000 employees.

HOME TOWN HORROR: Tiny Billund is shocked.

Outside Denmark, Lego bricks will be made by Flextronics, a Singapore-based electronics manufacturer, which operates factories in Mexico and eastern Europe. Flextronics also is taking over Lego's factory in Kladno, in the Czech Republic, beginning Aug. 1.

In 2005, the privately owned Lego Group posted a net profit of about $86 million, compared with a net loss of nearly four times that in 2004.

In September, Lego said it was considering moving all or part of its production to Eastern Europe or China, and said the restructuring plans could affect all its production facilities.

A month later, Lego announced that it was closing a plantity in Switzerland and five European distribution centers, and moved those operations to the Czech Republic. That move affected 540 workers.

Founded in 1932, Lego's name was invented by combining the first two letters of the Danish words "Leg godt" (play well) without knowing that that the word in Latin means "I assemble."

Copyright 2006 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
 

Darth Boru

Celtic Sith
Its the way the world is going, I'm afraid. Most stuff these days is made or serviced in China, India or former Soviet countries. Corporations care nothing for any community, only for where the greatest profit can be made.

Still, those countries are getting the same commercial greed. Salaries etc in those places are rising fast, so its only a matter of time before a balance is found and perhaps local industry will surface once more.

Who knows - for now, enjoy the cheapest consumer goods in history (relatively speaking) and mourne the passing of local manufacturing.
 

darthskellington

Dark Lord of the Typos
Yeah, it pretty much sucks all around. The only bright side is if it helps keep LEGO out of bankruptcy, then it's obviously a plus for the consumers.
 

Darth Aussie

Australian Sith Lord
i guess thats a good thing for the people who buy it but just seems wrong for the longtime employees who've been there for the company....:eek:
 

Buzz Bumble

Furry Ewok
If they paid the management types a sensible salary instead of over-bloated mega-thousands / millions, then many of these companies could keep going without "layoffs" for the next 20 years. Of course none of those big-wigs are probably losing their job, at least not without some multi-million dollar golden handshake. :(
 

Darth Boru

Celtic Sith
yup, its a side effect of capitalism, no escaping it. The big-wigs make stupid decisions, the company gets in trouble, those who actually dothe work get laid off and the big wigs take home obscene bonuses. horrible, unfair and disgusting, but its a fact of life.
 

mynock11

Sith Medic
Maybe is there products werent so overpriced and they didnt pay their managment so high a salary for stupid actions then maybe they would be in a better position. Like many other companys cough cough hasbro cough cough!!Im sorry to hear about the layoffs i hate hearing about anyone losing their job.
 

Darth Aussie

Australian Sith Lord
mynock11 said:
Maybe is there products werent so overpriced and they didnt pay their managment so high a salary for stupid actions then maybe they would be in a better position. Like many other companys cough cough hasbro cough cough!!Im sorry to hear about the layoffs i hate hearing about anyone losing their job.


ge Mynock i hope you feel better;)
 
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